- quote -

You will always have to collect and remit sales tax from any
taxable sales made to your state of domicile. If you do not
enter another state to sell (i.e. all orders taken over
phone or internet, and delivery made by common carrier),
then you would not have to register in those states where
you deliver.

Some states might try and play games and say that you have a
connection with their state simply because the server that
hosts your website is located in their state. In that case
they might try to require you to collect and remit sales
tax, and possibly income tax.

Josh

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<teacda[at]hotmail.com> wrote:

- quote -

Yes. You only collect and remit it on purchases shipped
within your state.

- quote -

A sale shipped to the same state is not interstate commerce,
according to that state. (It is according to the federal
government if the fed wants to regulate it.)

Seth

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teacda[at]hotmail.com wrote:

- quote -

Don't read things out of context, now.
And check with your own state on the issue. They will tell
you to collect sales tax on shipments to individuals within
your same state.

ChEAr$,
Harlan Lunsford, EA n LA
Wed Aug 9 2006

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teacda[at]hotmail.com wrote:

- quote -

Unless you live and operate your business in New Hampshire,
Oregon, Montana, or Delaware (states that do not impose
sales or use taxes), you must register with your state's
revenue department as a seller and collect and remit sales
taxes on all sales you ship to customers in your state.
This will also allow you to purchase merchandise for resale
without paying sales tax.

The statement you found is misleading in that it says
categorically that states cannot impose sales taxes on mail
order businesses. In fact, the Court has upheld the
authority of the state where such a business has a physical
presence (generally, the state where it is headquarters and
from which it ships the property it sells) to impose sales
and use taxes (_Quill Corp. v. North Dakota_, 112 S.Ct. 1904
(1992)). However, you are not required to register or
collect sales or use taxes on sales shipped to customers in
other states, as long as you do not have a physical presence
there. A "physical presence" includes the presence of
property (such as inventory), employees, or agents
soliciting sales on your behalf.

Note that Alaska also does not impose any statewide sales or
use tax; however, most of the cities in Alaska impose local
taxes, and if you operate in one of those cities you must
register with its tax agency.

Katie in San Diego

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<teacda[at]hotmail.com> wrote

- quote -

At a minimum - you will owe sales tax on sales to buyers in
your state. Generally that would be based on their mailing
address.

What you are referring to is the fact that no state can
charge a sales tax for sales you make to a buyer in another
state. They all have every right (and they enforce it) to
collect sales tax on sales you make to in-state consumers.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

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teacda[at]hotmail.com wrote:

- quote -

The normal rule is that you are required to pay sales taxes
in any state in which you have a "presence." That is to say
where you have a physical or business address, where you
warehouse goods, where any employee resides. So you must
collect sales taxes from at least one state, unless you are
located in a state that does not impose sales taxes.

In addition there are interstate compacts by which states
will collect sales taxes for each other. If your state is a
party to one of these, you will additionally be required to
collect sales taxes from people who live in the other states
bound by the compact.

Check with a local tax pro before you do anything else.

Stu

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teacda[at]hotmail.com writes:

- quote -

Unless you make it an ironclad policy to never sell your
goods to anyone in your own state, you'll have to at least
register with your own state.

- quote -

That's not a complete statement. The rule is that if you
have no nexus in a state, you can't be compelled to collect
for and remit sales tax to that state. However, you by
definition do have nexus in the state you're physically
located in, and so you'll have to collect and remit sales
tax to your home state for any sales made to people in your
home state.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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Hi. I am setting up an entirely internet based mail order
business. I will not do in person sales - all my sales will
be generated via the web, through Ebay, ads and email. I
will ship all items, regardless of how close to my physical
location the buyer is. My only physical/public business
address will be the address I use to ship and receive, and
it will ONLY be used for those purposes. Under such
circumstances, am I required to register with my state to
collect sales tax? I found the following quote on the web:
"The right of a state to collect sales tax on interstate
sales is restricted by the commerce clause in the United
States Constitution, which prohibits states from
unreasonably interfering with interstate commerce. The U.S.
Supreme Court has held that states cannot impose sales tax
on companies whose sole business is a mail order business."
Please advise. Thank you!

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